Whole Foods stock blew up last Friday as online commerce giant Amazon purchased them in a deal valued at over $13.7 billion. Whole Foods is an organic grocer, trending as the modern way of how food should be grown, prepared, and eaten. Amazon is an online retailer, trending as the modern way to shop from the comforts of home, by phone on the go, and now a grocery store? Amazon has purchased Whole Foods in an effort to maximize the customer experience, you can buy virtually anything from the smile on the box.
According to CNBC, CEO of Whole Foods, John Mackey stated "this is an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers." Mackey will remain the CEO of Whole.
Amazon has been pushing to expand into the online grocery business, but has run into obstacles to make it efficient and safe, as in keeping perishables fresh during transit. It is an emerging marking, although only a small percentage of people actually purchase groceries online, or have a delivery service like Peapod. After all, you can't purchase everything online, no matter how cheap or efficient it may be to consumers and suppliers, having to physically go and "grocery shop" yourself is still going to be the norm for quite sometime.
Millennial's were the biggest group of consumers to purchase groceries online last year, and Millennial's are the biggest consumer group to Amazon. The biggest consumer group shopping at Whole Foods would be Millennial's, and twice as likely over the age of 25. This was a puzzle put together, the next generation of shopping and grocery shopping being reworked to suite the modern age.
This is all up to personal opinion, but Amazon is known for competitive pricing, buying something online over at the store is why so many stores are closing up, Amazon proved its cheaper to shop online. Any grocery chain could have been purchased by Amazon, something like Kroger, or Delhaize Group would have been made more sense, because of competitive pricing, but Whole Food sis the exact opposite, there not known for being cheap. Amazon may change how we buy for forever, or at least how Whole Foods sells food.
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